Mismatch of Skills Starts Early: The Need to Align Primary Education with Labor Market Needs

A recent extensive OECD report titled "Skills for Jobs 2022", compared to the report of the European Training Foundation highlights a growing skills mismatch in many countries between what students are learning and the skills needed in the labor market. One key insight from the report's quantitative analysis of 43 OECD and partner countries is that this skills gap begins even in primary school, suggesting an urgent need to re-evaluate primary curriculums to equip students with relevant future skills from an early age.

Specifically, the report found pronounced shortages across countries in "training and education skills," which encapsulates both teaching ability as well as subject matter expertise.

The data indicates a shortage of educational skills in 35 of the 43 economies analyzed. Countries facing the most extreme education skills gaps based on the report's shortage index include Thailand, Denmark, Spain, and Belgium.

As one significant contributor to skills mismatches down the line, the report suggests that many primary school teachers may lack proficiency in key subjects or the pedagogical skills to effectively impart foundational academic and cognitive meta-learning abilities.

Outdated teacher training approaches are also cited in the report as a driver of this shortage of qualified educators equipped to deliver in-demand skills instruction aligned with labor market needs. For example, the relative importance of judgment, decision-making, and learning skills for health service sector jobs has increased over recent years, according to the occupational skills mapping data in the report, but teacher training programs may not have kept pace with the need for strengthened curriculum in these areas starting even at the primary education level.

As a cumulative result of gaps in the education workforce capacity, students too often move through the entire educational system without building skills explicitly articulated as needs by employers. For example, key cognitive abilities fall into the "growing imbalance" categorization in the OECD average skills needs analysis.

Photo by Markus Spiske on Unsplash

Closing the Digital Skills Gap Starts with Primary Education

Additionally, the rapid pace of technological change means primary curriculums may significantly lag behind in teaching fundamental digital skills essential for the future workforce.

The OECD report found that while secondary and higher education programs have begun actively incorporating technology skills into their curriculums, primary schools have been alarmingly slower to adapt.

For example, the report categorizes computer programming skills specifically as a "small shortage" on average across OECD countries, indicating unmet demand in the labor market. However, the size of the shortage for computer programming skills has actually decreased over time since 2012, suggesting secondary and higher education systems are responding to the digital skills gap more rapidly than primary schools.

The data also shows the most pronounced shortages in detailed digital skills are in areas like digital content creation, digital data processing, and web development – relatively advanced skills that likely require building foundational competencies in primary and early secondary schooling. If students do not receive introductory digital literacy training such as basic coding, collaboration tools, and computational thinking until later years, they enter the workforce significantly disadvantaged.

For instance, countries with some of the largest share of occupational shortages concentrated in high skilled positions, like Belgium, Estonia, and Finland, may presume candidates have been building relevant digital skills since an early age to prepare them for specialized roles.

Students who lack this formative technological grounding from an early stage of the educational system may struggle to ever catch up to employer needs in our rapidly digitizing economies. Proactively addressing delays in digital skills curriculum at the primary school level is critical for setting students up for workplace success rather than maintaining the troubling status quo of only reactively addressing digital literacy gaps later on.

Diverging Skills Gaps in Developed vs. Developing Countries

The OECD Skills for Jobs 2022 report highlights significant variations in skills imbalances between advanced and emerging economies. Countries still developing more mature knowledge economies demonstrate substantially higher skill mismatches compared to leading developed nations.

For example, countries like Mexico and South Africa contain over 50% qualification mismatchesFor example, countries like Mexico and South Africa contain over 50% of qualification mismatches between workers' education and the actual skill demands of their occupation. By comparison, qualification mismatches in top-performing countries range between 20-30% on average, such as in the Czech Republic and Germany. Poorer alignment in developing markets results from education investments outpacing the creation of high-skilled jobs, whereas developed countries have relatively high-skilled labor market demand.

Access gaps also widen skills gaps in underserved nations. While advanced economies grapple with shortages in specialized niches like healthcare or high-tech, developing countries face fundamental skill deficiencies holding back entire workforces. For instance, digital skills are consistently in shortage or balance in OECD members, but remain in surplus in countries like Peru, Turkey, and South Africa — a pipeline problem producing downstream mismatches. Similarly, cognitive abilities fall substantially short of employer needs in lower-income countries based on the OECD indicators.

Without right-sizing education and skills training in local occupational structures, underserved populations will perpetuate cycles of skills imbalances. Customized solutions responding to specific labor market contexts are necessary to produce skill supply suiting demand. Developing countries may require foundational investments before reaching advanced economy mismatch challenges around niche occupations.

Leveraging Technology and Lowering Economic Barriers to Align Primary Education with Labor Market Needs

To combat these systemic shortcomings, experts cited in the OECD report recommend strategically aligning primary school curriculums with concrete near and long-term labor market skill needs projections.

Schools can leverage big data and AI-driven analytics to accurately and efficiently track employer skill demands in real time. By continuously integrating these labor market insights into primary programs, schools can pivot curriculums to build evolving priority abilities – whether digital competencies, creative thinking, or scientific reasoning – into the foundational knowledge delivered from the first years of education.

Equipping teachers with digital training ecosystems is equally critical to realizing responsive curriculum modernization. Online portals can cost-effectively provide educators with cutting-edge lesson materials and teaching methods targeting skills gaps inefficiently addressed by outdated instructor training models. Modernized educator capacity building ensures human resources are prepared to deliver the latest in-demand skills instruction to students aligned to data-driven labor market needs analysis.

Making these transformations centered on human-technology collaboration in early childhood and primary education can ensure students progress through their academic years with relevant future-proof skills rather than playing perpetual catch-up. Successfully leveraging AI and advanced analytics requires overcoming economic barriers posed by initial development costs and the availability of technological infrastructure. Governments should provide subsidies and cost-sharing initiatives, so underfunded school districts can build the digital foundations needed to eradicate the unevenness of skills mismatch along socioeconomic boundaries.

Ultimately, the OECD report makes clear that building this workforce-ready base for all students, regardless of background, can set up economies and individuals for lifelong success in an ever-evolving job landscape. Tackling entrenched skills mismatch requires acknowledgment that readiness takes root in how primary education nurtures learners from day one. Aligning to market signals early and equitably must be the way forward.


Register for the Exponential Technologies self-paced course 

AVAILABLE NOW ON THE OPENEXO LEARNING HUB